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Dell Company International Case Analysis

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Dell Computer was founded in 1984. Its business strategy is to customize computers for customers according to different needs. In China, Dell is famous for its low-cost manufacturing. The author likes Dell’s laptop very much and has been using it. At some instant, the author had questions and wanted to explore the mysteries and possible problems behind Dell’s success. That’s why the author decided to analyze Dell. This paper will analyze the company to find problems and solve them.

Analysis

Through the analysis of political and social factors, the company found that the global political environment is relatively peaceful and stable. Due to the trend of globalization and the advent of the information age, it has provided a better environment for economic development. Make the necessary strategy choices. The company found that consumers’ order information needs a lot of manual records, so in order to solve this shortcoming, Dell decided to establish a Dell website to communicate with customers. It organizes production according to the customer’s order, and timely and accurately knows the customer’s order information through the information transmission system, providing customers with personalized products. The direct marketing strategy is that the company uses the opportunities created by globalization, and the company uses market demand to obtain profits. Due to the need to communicate with consumers in a timely manner, the telephone hotline and network maintenance costs have always been expenditures, which has adversely affected the company and will cause the company to be acquired or bankrupted by other competitors in the early stage. On the other hand, many companies compete for market share in the computer industry, and the competition is fierce. When competition is intensifying, it will lead to large-scale advertising and price reduction strategies, which will cause the company’s revenue to decline. Using Porter Five Forces for analysis, Dell uses the online direct sales model to directly face customers, resulting in a sharp drop in sales prices. However, at the same time, the company’s profits will be weak, which will impact the company when there is internal competition in the industry, and the continuous development of smartphones has a substitution effect on the company. In summary, Dell’s advantage is that the product’s low price makes it easier to attract customer groups; the disadvantage is that the direct sales model determines that the number of service stations is too small and the after-sales service is weak; the opportunity is that users have increased requirements for computer specialization, It’s easy to choose Dell for personalization; the threat is a single sales model and the entry of powerful new competitors.

Solution

Strategies and measures that Dell undertook to address its loss of market share were many. For example, it reduced reliance on direct sales by selling through retail channels and launched laptops and netbooks (Colt, 2019). Dell should adopt a mixed sales model, expand cooperation with target market intermediaries, and promote the company’s products on a larger scale. As Dell has fewer mid- to high-end products, it should quickly establish a professional brand image, highlight Dell’s professionalism, and increase Dell’s influence. At the same time, in order to solve Dell’s after-sales service problems, the relevant professional knowledge, work skills and skills training of Dell’s after-sales service personnel should be strengthened, and the number of Dell’s after-sales service personnel should be expanded to ensure that customers can solve problems immediately. On the other hand, Dell should strengthen its brand loyalty. Loyalty is related to the creation of value. Enterprises create more value for consumers, which is conducive to cultivating consumer brand loyalty, and brand loyalty will bring profit growth to enterprises. Due to the existence of high profits in the computer market, brand loyalty will help Dell block the entry of new competitors, seize the favorable situation, and consolidate the industry position of the enterprise.

Justification

Customers want people to help solve their problem, not just a part of their problem (Brock, 2015). Whether the after-sales problem is solved or not is a direct reflection of customer satisfaction.

This is an era of communication, not an era of past sales. Routine surveys of customer satisfaction are very helpful for companies to understand how customers feel and adjust products and services. Such surveys must be timely, sensitive, and comprehensive at a certain frequency in order for Dell to recognize the reasons for changes in overall customer satisfaction. For the customer satisfaction survey to work, it must be integrated with Dell’s day-to-day management. For example, make regular return visits via email after purchase.

Customer satisfaction is fundamental to the survival and development of an enterprise. Different service levels determine different customer satisfaction. For the special services that operate around customer satisfaction, it will make customers feel the warmth and integrity of the enterprise, which is conducive to customer identification and recognition, creating a resonance of the customer ’s emotional mood with the product brand, and thus forming a high degree of customer loyalty to the product brand Conducive to Dell’s promotion of product innovation, continuous improvement of products and services, and enhance its own competitiveness.

After-sales service is to fully understand customers, research customer psychology, improve work shortcomings, and improve service quality to achieve the purpose of improving customer satisfaction and brand loyalty. Dell’s active improvement of the after-sales service system is conducive to improving the credibility and reputation of its own products, strengthening the overall external output of its corporate image, laying a solid market foundation for Dell’s marketing efforts, and increasing Dell’s competition among peers in the fierce market competition. In the dominant position.

Summary

If the company want to become an international company, internal assessment and external environmental analysis are essential, which will allow the company to accurately determine external crises and opportunities, and analyze the company’s external environment, while internal analysis will make the company’s core competitiveness Promotion. Using PEST analysis, Porter’s five-force analysis and SWOT analysis can allow the company’s internal and external environment to be fully assessed, to avoid major mistakes in the company’s strategy, and to reorganize the company’s business plan through customer satisfaction surveys, and provide more assistance for the company’s future development. 

References

  • Colt, G. (2019, February 9). Dell’s Competitive Advantage & Strategy. Retrieved February 27, 2020, from https://toughnickel.com/industries/Dell-Competitive-Advantage
  • Brock, D. (2015, October 21). Solving The Customer’s Problem. Retrieved February 27, 2020, from https://partnersinexcellenceblog.com/solving-the-customers-problem/ 

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Dell Company International Case Analysis. (2021, November 10). GradesFixer. Retrieved December 8, 2021, from https://gradesfixer.com/free-essay-examples/dell-company-international-case-analysis/
“Dell Company International Case Analysis.” GradesFixer, 10 Nov. 2021, gradesfixer.com/free-essay-examples/dell-company-international-case-analysis/
Dell Company International Case Analysis. [online]. Available at: <https://gradesfixer.com/free-essay-examples/dell-company-international-case-analysis/> [Accessed 8 Dec. 2021].
Dell Company International Case Analysis [Internet]. GradesFixer. 2021 Nov 10 [cited 2021 Dec 8]. Available from: https://gradesfixer.com/free-essay-examples/dell-company-international-case-analysis/
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